Gold Prices Rebound in South Asia Amid US-Iran Tensions

Gold prices across South Asia experienced significant volatility and a general upward trend between July 15 and 16, 2026, driven by macroeconomic instability and geopolitical friction. In India, 24-carat gold rebounded on July 15, rising by ₹770 to ₹1,43,570 per 10 grams after a three-day decline, though early reports from Delhi indicated a temporary dip due to weak domestic demand from jewelers.

In Pakistan, gold prices rose for two consecutive days. On July 15, 24-karat gold increased by Rs 900 per tola to Rs 425,036, followed by a further increase to Rs 425,436 per tola on July 16. These gains mirrored international markets, where spot gold traded around $4,026 to $4,030 per ounce.

The volatility coincided with escalating tensions between the United States and Iran. Donald Trump reinstated a naval blockade on Iranian ports, prompting the Islamic Revolutionary Guard Corps to warn of potential shutdowns of additional export routes. These actions contributed to a rally in global oil prices, with Brent crude reaching $86.44 per barrel, and fueled investor demand for safe-haven assets like gold.

Silver markets showed mixed results. While silver prices in Delhi tumbled by Rs 8,900 per kilogram on July 15, prices in Pakistan remained steady before declining on July 16, with the local rate falling to Rs 6,155 per tola and international prices dropping to $56.76 per ounce.